Winning the new financial era

Chapter 159

"I invite you to come here today, mainly to talk about the B-round financing of Huimin Bicycle."

In the meeting room of Huimin Bicycle, Zhang Yida smiled and looked at the Gods of Wealth.

Huimin Bicycle will run out of working capital before the funds come in next month, but Zhang Yida is not in a hurry and has been firmly controlling the financing rhythm.

"No problem! Yida, how much is the valuation? How much is the financing scale? Our Gaoling Capital is very happy to participate."

Zhang Sanshi, the founder and CEO of Gaoling Capital, was the first to express his opinion that he missed Ruixiang and Yimin, and he did not want to miss Huimin bicycle again.

GGV Capital, Qiming Venture Capital, Penguin and Didi also came. They are all interested in Huimin Bike, but they did not get involved in the last round of financing.

So for the B round of financing, they are also determined to win.

Zhang Yida sent a copy of the operating data and financial data of Huimin Bicycle to the investors present, and waited for them to read it before continuing to speak:
"Huimin Bicycle has already deployed in all first- and second-tier cities in the country, and will expand to third- and fourth-tier cities in the next step.

There are 70 third-tier cities and 90 fourth-tier cities.A total of 160 cities will need 160 million bicycles to deploy [-] bicycles each. "

Seeing investors with strange eyes, Zhang Yida said with a smile:

"Of course, this is not a one-step process. I plan to complete the full coverage of third-tier cities with this financing! At the same time, the number of bicycles in first- and second-tier cities will be supplemented.

So I plan to raise 15 million US dollars in the B round based on the pre-investment valuation of 3 billion US dollars. "

"US$15 billion is a bit high. The A+ round of financing is only US$6.25 million in valuation! It's only been three months, and it has more than doubled."

Zhang Sanshi was the first to say that he valued the future development potential of Huimin Bicycle, but the valuation did not meet his wishes.

"That's right! Mr. Zhang, look at Huimin Bicycle's loss situation. It loses 6000 to [-] million every month. I don't even know when it will make a profit!"

Tong Shijie from GGV Capital also chimed in.

"Then have you noticed? The loss of a single shared bicycle is narrowing, and it is already producing a scale effect.

In addition, in addition to riding expenses, our advertising expenses also generate millions of dollars in revenue every month.

In addition to APP online advertising, we will also develop bicycle body advertising next.

Huimin Bicycle is destined to become a super APP with hundreds of millions of users. In the future, this will be a major traffic entrance that cannot be ignored. "

Zhang Yida knew that these people were pretending to be stupid for him, so he just pointed it out.

This time, everyone stopped talking.Does Huimin Bicycle have potential?there must be.It's just that Zhang Yida has a big appetite, and people like Tong Shijie who have dealt with him know it very well.

"$15 billion, right? Penguin recognizes this valuation, but we must lead the investment."

Ren Yu smiled and said, Penguin is rich and powerful, and they don't care about a little gain or loss in the valuation. The most important thing is the shareholding and strategic layout.

Shared bicycles have become a new super traffic entrance, and anyone with a discerning eye can see it, and Penguin is no exception.They have discussed internally that they hope to exchange a Jiugongge for shares.

It's Rui Xiang and Gou Dong's trick again, empty-handed white wolf.

Tong Shijie from GGV and Renping Gan from Qiming Venture Capital were a little unhappy with Penguin's price hikes, but they didn't want to give up the project of Huimin bicycles.

"Let's do this! We can agree to a valuation of US$15 billion, or Penguin can lead the investment, but we want the right to follow the investment in the next round."

Qiming Venture Partners Gan Renping knew that the situation had come to this point, and it was difficult to turn around, so he retreated, hoping to get a follow-up investment right for the next round of financing.

Zhang Yida was quite surprised by Ren Yu's statement. He thought he would have to fight again today, but he didn't expect Penguin's assist to be so fierce.

Of course, Penguin didn't have any good intentions. Zhang Yida guessed that it was another resource investment. He glanced at Ren Yu and asked:

"Is Penguin's shareholding for cash or traffic entry?"

"Hey, I think the number of Huimin bicycle users is still a bit small. With the blessing of WeChat traffic, the number of users will definitely usher in a skyrocketing increase."

Come on, as Zhang Yida expected, it really is another resource investment.

Although WeChat Jiugongge is good, Zhang Yida also wants cash. Without cash, how can he build a car for distribution?
"How to price the traffic entrance?"

Zhang Yida asked.

"Of course it's the same as Ruixiang. [-] million dollars a year."

Ren Yu felt that the buyer and the seller were very good deals. Penguin got the shares, and Huimin Bike got the traffic, so he said naturally.

"The development of Ruixiang and the development of Huimin bicycles are not on the same level. It is unfair to Huimin."

Zhu Xiaohu, the old shareholder of Jinshahe Venture Capital, spoke up. He has shares in Huimin Bicycle, so of course he helped Huimin Bicycle to speak.

"That is, without Penguin's traffic portal, it's not like Huimin can't do business. Without money, how can Huimin build a car?

In my opinion, what Huimin needs most at present is cash, and flow is secondary. "

GGV Tong Shijie had just been led by the penguin, so he couldn't help but say a few words.

"Huimin Bicycle is embedded in WeChat, which indirectly enriches WeChat's ecology. The asking price of 1 million US dollars a year is indeed too high."

The person who spoke was Zhang Ying from Jingwei Global. Like Zhu Xiaohu, he is also a shareholder of the A+ round.

"Mr. Ren, you see so many old shareholders objecting, should Penguin adjust its offer?"

Seeing that the atmosphere was a bit awkward, Xu Xiaoming came out to smooth things over.

"Yida, what do you think? You are the chairman, you decide."

Shen Beipeng was very decisive. Seeing that the negotiations had reached this stage, Zhang Yida had the highest voting power present, so he was asked to directly make the decision.

Zhang Yida is also very entangled. He is very tempted by the traffic of WeChat Jiugongge, but he also feels that the price of [-] million US dollars a year cannot be afforded by Huimin at this time.

There is only one most important thing for Huimin, which is to continue to intensify efforts to occupy the market and release vehicles.

He is very worried that Leech Financial Services will enter the bike-sharing market at any time.There is no threshold for shared bicycles, and the competition is capital.

If Leech Financial Services intervenes, things will be difficult.

The solution is for Huimin to occupy an absolute market share as soon as possible, so that Leech Financial Services can retreat in the face of difficulties.

Thinking of this, Zhang Yida didn't hesitate anymore, and said to Ren Yu:

"The matter of Jiugongge will be slowed down first, Huimin still needs cash to buy shares most urgently."

Ren Yu nodded and said, "Okay, you can also invest in cash. In terms of valuation, $15 billion is a bit inflated!"

Tong Shijie from GGV almost laughed out loud, thinking, I knew that Penguin of Gouyue had no good intentions, and bought shares without paying any money. Of course, the valuation was raised!Those who suffer the most are those institutions that have cash in their shares.

Immediately, Tong Shijie also nodded in approval, and said, "I think the pre-money valuation of US$12.5 billion is about the same, which is exactly twice that of the previous round."

"The valuation of US$12.5 billion is more appropriate, and Gao Ling basically agrees."

Zhang Sanshi had also resigned himself to his fate and planned to invest at a valuation of US$15 billion.I didn't expect the plot to be reversed, which was a surprise.

"Well, Qiming Venture Partners follows the trend. It doesn't matter if it's $12.5 billion or $15 billion. You can make an agreement. Qiming chose to follow the investment in this round."

Gan Renping sold Zhang Yida for a good deal, and did not participate in the joint price reduction.

"Mr. Liu, Didi hasn't commented yet, what do you mean?"

Zhang Yida set his sights on Liu Jing, Didi's president.

Liu Jing smiled, and then said:

"I think it's all right, or add a bet!"

"What's the bet?" Zhang Yida asked.

Liu Jing thought for a while and said, "Revenue, market share, and net profit are all fine."

"What do you guys think?" Zhang Yida turned his gaze to the crowd.

"support!"

"Agreed! The VAM can be valued at US$15 billion."

"Let's determine revenue or market share! It's too early for net profit."

Liu Jing still had a lot of face, and when she spoke, everyone expressed their support.

"How about fixed revenue? Huimin Bicycle's current monthly revenue is 5000 million yuan. Double that and set 1 million is enough! The revenue target of 12 billion in the next year."

Zhang Yida said to everyone.

"The valuation of US$15 billion is 6.25 times higher than the US$2.4 million valuation, and the revenue must be 2.4 times to be reasonable.

It is more appropriate to set it at 1.2 million per month and 14.4 billion per year. "

Tong Shijie's point of view has been unanimously recognized by the investors present.

Zhang Yida estimated in his mind that with the financing of 3 million US dollars this time, 100 million new bicycles can be produced. Adding the original 70 bicycles, it is not difficult to basically charge 1 million to 1.1 million bicycles per month.

With a little more effort on the advertising side, a monthly revenue of 2000 million should be achievable.

Immediately Zhang Yida nodded and agreed to the conditions of the bet.

对赌时间由2015年3月11日至2016年3月10日，为期一年。

During this period, a revenue of 14.4 billion yuan was achieved, and the valuation was calculated based on the pre-investment 15 billion US dollars.

If the revenue of 14.4 billion yuan is not reached, the shares will be recalculated according to the valuation of 12.5 billion US dollars.

At the same time, the share of the B round of financing of 3 million US dollars was disputed by all parties.

In the end, it was decided that Penguin would lead the investment of US$1 million, and Gaoling Capital, GGV Capital, Qiming Venture Capital, and Didi would each follow with US$5000 million.

After the B round of financing, the shares were changed to:
Zhang Yida: 45.33%
Option pool: 5.33%
Huayi Capital: 2.67%
Blackshirt Capital: 13.33%
Zhenke Fund: 3.33%
Jinshahe Venture Capital: 6.67%
Matrix Global: 6.67%
Penguin Industry Fund: 5.56%
Gaoling Capital: 2.77%
GGV Capital: 2.77%
Qiming Venture Partners: 2.77%
Didi: 2.77%
Zhang Yida's shares dropped further, but because of the existence of AB shares, Zhang Yida still firmly controlled 89.2% of the voting rights.

When raising funds, Zhang Yida put forward a requirement, that is, the investment funds must arrive in the account at one time, otherwise the investment will not be accepted.

Ren Yu blushed a little, Zhang Yida meant something, and he was probably talking about Penguin's default on investment funds.

He had no choice but to follow Mr. Ma's words.However, it is really embarrassing in front of the little fellow.

The financing amount of US$3 million equivalent to RMB 18.45 billion was credited to Huimin’s bicycle account within a week.

After the money arrived in the account, Zhang Yida breathed a sigh of relief. After a few more days of delay, Huimin Bicycle might not even be able to pay next month's salary.

The 3 million U.S. dollars is life-saving money. Huimin Bike is expanding too fast, and the capital chain is very tight.

Zhang Yida first remitted an advance payment of 3 million yuan to Fujitec, and directly placed an order for 100 million bicycles.

The remaining balance payment of 7 million yuan will be completed at Fujitec, after passing the inspection, and payment will be made after successful delivery.

It is still the old rule, including manufacturing and transportation. After leaving the factory, 70 of the bicycles need to be transported to 70 third-tier cities.

For the other 30 bicycles, 15 bicycles will be added to the four major first-tier cities, and the other 15 bicycles will be added to Lin'an, Rongcheng, Yuzhou, Tianjin and other strong second-tier cities.

(End of this chapter)